A deed of reconveyance is most commonly issued when a mortgage has been paid in full. A homeowner who has received a deed of reconveyance cannot be foreclosed upon by the lending institution.
A reconveyance deed is an official document from a mortgage holder releasing the debtor from the mortgage. It is evidence that the mortgage has been paid in full.The mortgage note is marked paid, the original mortgage is returned and a deed of reconveyance is issued to the homeowner showing the mortgage has been paid off.
Investopedia explains that "full reconveyance" occurs when a deed of reconveyance is issued by a mortgage holder, indicating that the borrower is released from his mortgage debt. Full reconveyance is issued when a borrower has fully pays the mortgage on a home.
What Is a Deed of Full Reconveyance? A deed of reconveyance is an official document issued by a mortgage lender that transfers the property title of a home to the borrower from the lender and releases the borrower from the debt associated with the mortgage, according to Investopedia.
To Complete a Release Deed. Procedural requirements must be met. The note must be paid in full before the deed of reconveyance can be recorded. The lender must record the deed of reconveyance under statutory law or they can face a penalty or fine. The laws vary in each state. Recording or formal filing must be completed.
secured by the Deed of Trust have been fully paid, and said Deed of Trust and the note or notes secured thereby having been surrendered to said Trustee for cancellation, does hereby RECONVEY without warranty, to the person or persons legally entitled thereto, the estate now held by it thereunder.
reconveyance. n. in those states which use deeds of trust as a mortgage on real property to secure payment of a loan or other debt, the transfer of title by the trustee (which has been holding title to the real property) back to the borrower (on the written request of the borrower) when the secured debt is fully paid.
Functionally, the lender writes the trustee named in the deed of trust, which is usually a title company, a request for reconveyance when the loan secured by the deed of trust is paid off, or when for some other reason the lien is to be released.
Full Reconveyance. When a deed of trust/mortgage is paid in full, you can record a Full Reconveyance from the trustee stating publicly that the loan has been paid. The Full Reconveyance Form is completed and signed by the trustee, whose signature must be notarized. Full Reconveyance form can be purchased at most office supply or stationery stores.
A Deed of Reconveyance certifies that a debt secured in a Deed of Trust has been repaid and transfers title of real property to the borrower from a trustee.Create your free reconveyance deed by answering a few simple questions and following our simple template. Available in all states to print or download.